Trump's Trade War Officially Begins - Hit & Run

Soybean plants grow in a field near Tiskilwa Illinois

Soybean plants grow in a field near Tiskilwa Illinois

US customs officials will begin collecting an additional 25 percent tariff on imports from China of goods ranging from farming plows to semiconductors and airplane parts.

The Trump administration contends that China has deployed predatory tactics in a push to overtake USA technological dominance.

The trade war may have just started, but China has already been making moves in the soybean world as USA shipments originally destined for the nation have been canceled or rerouted.

The United Nations reported past year that, since 2012, China has led the world in the number of tourists who travel to other countries.

The ministry called the United States actions "a violation of world trade rules" and said that it had "initiated the largest-scale trade war in economic history".

In addition to Friday's tariffs and in response to China's retaliation in June, Mr Trump has ordered tariffs on $200bn worth of imports and threatened tariffs on another $200bn.

Despite frustration with Chinese trade practices, which require foreign firms to spill trade secrets to access the 1.3 billion-person market, US businesses have warned for months that Trump's trade threats may do more harm than good.

Chinese Commerce Ministry spokesman Gao Feng said that the proposed USA tariffs would hit many American and foreign companies operating in China and disrupt their supplies of components and assembly work.

Oranges, the quintessential Florida product, are listed on a list of retaliatory tariffs published by the Chinese government.

The higher USA tariffs went into effect just after noon in Beijing (0401 GMT).

The Asian giant is already expected to cancel American soybean imports due to the 25% tariff on the legume and, according to Bloomberg, has already purchased 19 cargoes from Brazil.

It is now the "largest trade war in economic history". They are concerned trade disputes will prevent investment that supports economic growth. The administration has placed "these import taxes squarely on the shoulders of manufacturers and by extension consumers", Souhrada said.

The company wants customers to split the cost of the tariff hike, but few are willing, said Tong. American officials worry USA industrial leadership will be eroded by Chinese plans to create tech champions in fields including robotics, biotech and artificial intelligence.

Peak Pegasus, together with numerous other trade companies and businessmen, will become the victims of this trade war.

Foreign companies accounted for $20 billion, or 59 percent, of the $34 billion of exports from China that would be subject to new USA tariffs, with US firms accounting for a significant part of that 59 percent, Gao said.

Trump has taken an aggressive stance on trade, fulfilling a campaign promise.

Trump also said the USA is ready to target an additional $200bn in Chinese imports - and then $300bn more - if Beijing does not yield to USA demands and continues to retaliate.

The U.S. Council for International Business (USCIB), which represents many of America's global companies, called on China and the United States to ease tensions and take immediate steps to work through conflict at the World Trade Organization.

White House trade officials say the current strength of the United States economy means Washington can withstand more pain than its rivals if the battle escalates further.

The Chinese currency, the yuan, has dropped 3.5 percent against the US dollar over the past month, giving Chinese companies a price edge over their USA competition.

External observers have widely criticized this approach, saying such protectionist rhetoric undermines free trade policies that have shaped the global exchange of goods in recent decades.

This will be affected by how high individual tariffs are, and also if they are expanded to other countries like Canada, Mexico and the European Union. Officials in Beijing reject accusations of theft and say foreign companies have no obligation to hand over technology.

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